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Bitcoin is showing signs of potentially following gold's impressive ascent to new all-time highs. As gold continues to break records, market observers are increasingly pointing to a similar trajectory for Bitcoin, suggesting a delayed but inevitable surge. This potential mirroring of gold's price action has ignited optimism among traders and analysts.
Key Takeaways
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Bitcoin needs to surpass the $115,000 mark to confirm sustained upward momentum.
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A potential retreat to $110,000 is still a consideration due to CME futures gaps.
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Gold has reached fresh record highs, leading to speculation that Bitcoin is set to follow suit.
Bitcoin's Price Action and Resistance Levels
Bitcoin (BTC) has been consolidating its recent gains, trading around the $113,000 level following the Wall Street open. The cryptocurrency had previously touched $114,842 overnight, its highest point since September 22, fueling bullish price forecasts. Popular trader Cas Abbe noted a hidden bullish divergence on the daily Relative Strength Index (RSI) and highlighted the crucial resistance level around $115,000, suggesting a reclaim of this level would confirm a breakout.
Michaël van de Poppe, a crypto trader and analyst, also anticipates upward continuation after what he described as a "slight pullback." He pointed out that Bitcoin has already broken through a significant resistance zone, indicating substantial upside potential.
The CME Futures Gap Concern
Despite the positive outlook, some reservations remain concerning a weekend "gap" in the CME Group's Bitcoin futures market. This gap presents a potential downward price target of $110,000, a level that traders are watching closely. Some analysts suggest that this unfinished business in the futures market could lead to a temporary dip before further upside.
Gold's Influence and the Eight-Week Delay Theory
The primary catalyst for the current optimism is the parallel between Bitcoin and gold's price movements. Gold (XAU/USD) has achieved yet another all-time high, trading at $3,871 per ounce. Frustration had been mounting as Bitcoin's price action lagged behind gold's bullish performance in recent weeks.
However, many market participants believe the positive correlation between the two assets remains intact. Trader Merlijn suggested that Bitcoin is "following gold's script," with a similar consolidation pattern and an impending breakout. Crypto analyst Ted Pillows theorizes that Bitcoin typically follows gold's lead with an approximate eight-week delay. He predicts that while a correction might occur, the fourth quarter is poised to be significant for Bitcoin.
Daan Crypto Trades echoed this sentiment, stating that Bitcoin's catch-up is a "matter of time." He observed that throughout the current cycle, BTC and cryptocurrencies have experienced short bursts of outperformance followed by extended periods of sideways consolidation relative to gold and stocks, but ultimately, the market tends to catch up and surpass previous levels.
Sources
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Different This Time? Bitcoin May Be Ready to Follow Gold to Record Highs, Cointelegraph.
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Bitcoin podría estar listo para seguir al oro y alcanzar ATH, Cointelegraph.
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